Seven-year Note Auction Generates Lackluster Demand

An auction of $29 billion in seven-year bonds generated lackluster demand from investors. The yield on the newly auctioned seven-year notes was 1.834%, 1.1 basis points higher than the seven-year yield the minute before the auction. Indirect bidders, a group that includes foreign central banks, took home 52.3% of the auction, compared with an average take of 52%. Two auctions earlier in the week saw strong demand from foreign investors. Treasury yields moved higher after the auction. The seven-year yield was up 4.9 basis points on the day to 1.828% in recent trade.